How much does insurance go up after an accident with Liberty Mutual? This question is about Liberty Mutual

How much does insurance go up after an accident with Liberty Mutual?

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This question is about Liberty Mutual

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@WalletHub • 03/10/21 This answer was first published on 03/24/20 and it was last updated on 03/10/21.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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Liberty Mutual insurance rates go up by an average of 69% after an accident. Drivers who have Liberty Mutual accident forgiveness will not see their car insurance rates go up at all after their first accident in 5 years, however. Even if the accident can’t be forgiven, it will only affect your insurance rate for 3-5 years, depending on your state.

The exact amount that premiums go up after an accident depends on a few factors, including who was at fault, how much damage was caused, and the policyholder’s driving and claims history. In general, at-fault accidents or severe accidents that lead to expensive insurance claims increase rates more than minor or not-at-fault wrecks. Repeat offenders also see relatively large rate hikes.

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People also ask

Does filing a claim increase car insurance rates?

Filing a claim will increase car insurance premiums from 3% to 32% on average for three to five years in almost all cases. How much your rate goes up depends on several factors, like the claim type and amount, your insurance company, your claims history, your location, and whether or not you have accident forgiveness.… read full answer

The most significant factors affecting how much your rates go up after an accident are the claim type and amount. Accidents that you cause will raise your premium the most, especially if the damages are over $2,000. Although prices don’t jump as much when you’re not at fault or the incident was beyond your control, you’ll probably still see a rate increase.

Claim Type	Average Rate Increase
Bodily Injury, At-Fault	32%
Property Damage, At-Fault (over $2,000)	31%
Property Damage, At-Fault (under $2,000)	26%
Comprehensive (over $2,000)	3%
Comprehensive (under $2,000)	3%

It may seem unfair, but insurance companies are within their rights to raise your rates after a claim, even if the accident was not your fault. Insurers charge based on risk, and statistics show that you’re more likely to make additional claims if you’ve recently filed one.

Some insurance companies charge more than others after not-at-fault accidents, though. Progressive charges the most, raising rates by more than 16% on average. State Farm, on the other hand, doesn’t increase prices if their customer is not at fault.

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Are Liberty Mutual insurance rates competitive?

Yes, Liberty Mutual insurance rates are competitive for some drivers, including teens, college students, and military personnel. Liberty Mutual car insurance costs an average of $879 annually, or $73 per month.

Liberty Mutual’s car insurance rates are based on your driving record and experience, along with factors like the type of car you drive, your ZIP code, your insurance history, and more. Your coverage and deductible choices also impact your final quote, as do your eligibility for discounts.… read full answer

Sample Liberty Mutual Car Insurance Rates

Age	Average Annual Cost of Minimum Coverage
16	$2,412
21	$1,261
25	$1,052
45	$879
60	$913

These sample quotes are representative of Liberty Mutual’s insurance prices, but individual results will vary. To learn more about how we obtained these sample quotes, check out the methodology section of our complete Liberty Mutual car insurance review.

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Why is Liberty Mutual so cheap?

Liberty Mutual is so cheap because the company offers a wide variety of discounts and is the sixth largest insurer by market share, which helps Liberty Mutual keep prices competitive. A minimum coverage policy from Liberty Mutual costs an average of $73 per month, and Liberty Mutual premiums can be made even cheaper by taking advantage of discounts such as safety features discounts and accident-Free Discount. Plus, Liberty Mutual rewards customer loyalty with discounts for insuring more than one car and bundling multiple policies, such as home and auto.… read full answer

Average Monthly Rates for Liberty Mutual vs. Top Competitors

Company	Minimum Coverage	Full Coverage
Liberty Mutual	$73	$230
State Farm	$77	$218
Progressive	$54	$168

Note: Premiums are representative of a 45-year-old good driver in CA; individual premiums will vary.

Liberty Mutual is especially cheap for young drivers in particular. That’s because Liberty Mutual has special savings opportunities for drivers in this category, such as discounts for students who maintain at least a 3.0 GPA.

Your final premium is based on a variety of factors, though, such as your driving record, insurance history, and more. Every insurance company determines their rates differently, so even though Liberty Mutual is among the cheapest car insurance companies, the only way to confirm you’ve found the lowest price is to compare quotes from multiple companies.

To learn more, check out WalletHub’s review of Liberty Mutual and see Liberty Mutual’s full profile.

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WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.

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